Balance in Social and Economic LMX Relationships and its Relation to Work Performance - Relational Schemas as Moderator

Abstract

The aim of this study is to examine the link between social leader-member exchange (SLMX) balance, economic leader-member exchange (ELMX balance), and work performance. It also examines whether followers’ expressive and instrumental relational schemas moderate the relationship between different LMX balance constellations and work performance. The study is based on cross-sectional data from an internet survey conducted among 150 followers (response rate = 87%) with 62 associated leaders (response rate = 84%) in Norwegian companies. Analyses of variance revealed that work performance scores varied significantly across four different SLMX relationship types (H1-H2) but not across ELMX relationship types (H3-H4). Moderation analyses revealed significant interactions between certain SLMX relationship types and relational schemas, and between certain ELMX relationship types and relational schemas (H5- H8). Five out of eight hypotheses were partially supported. The study fills both theoretical and empirical gaps in LMX theory research, and is the first to combine insights about balance in perceptions with the distinction between SLMX and ELMX. It increases our understanding of the LMX construct by giving a clearer image of the conditions under which LMX relates to work performance. It also advances our knowledge about the interplays of leader-member exchanges and followers’ relational schemas. Key words: Leader-member exchange (LMX), LMX theory, social LMX, economic LMX, LMX balance, relational schemas, work performance, work effort, work quality